In Some Cases, Pollution Permits May Be Better Than a Pigovian

question 9

Multiple Choice

In some cases, pollution permits may be better than a Pigovian tax because:

• A)Pigovian taxes reduce pollution by a greater amount than pollution permits
• B)pollution permits generate more revenue for the government than a Pigovian tax
• C)pollution is difficult to measure
• D)the government has more explicit control over the quantity of pollution created with permits

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Definitions:

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without prior learning or conditioning.

Conditioned Response

A learned response to a previously neutral stimulus that has become conditioned through association with an unconditioned stimulus.

Meat

The flesh of animals, including mammals, poultry, and fish, consumed as food by humans.

Conditioned Stimulus

A conditioned stimulus is a previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.